Attorney General Stein Announces Nearly $2 Million for North Carolina in Drug Settlement

Release date: 8/2/2017

(RALEIGH) Attorney General Josh Stein today announced that North Carolina, along with 27 other states and the federal government, has settled with the drug company Celgene over alleged marketing schemes for off-label use and kickbacks. Celgene, a New Jersey-based company, will pay North Carolina $1,918,498 for the allegations around the drugs Thalomid® and Revlimid®.

“To protect patients, drug companies must accurately represent their products to prescribers,” said Attorney General Josh Stein. “If they don’t, my office will hold them accountable.”

Specifically, this settlement resolves allegations that Celgene unlawfully marketed these drugs for a variety of off-label uses, including Thalomid® for treating multiple myeloma prior to its FDA approval for use in treating multiple myeloma, for treating myelodysplastic syndromes, and a variety of forms of cancer. The settlement also resolves allegations that Celgene unlawfully marketed Revlimid® for treating multiple myeloma and several forms of cancer.

The settlement also resolves allegations that Celgene:

· Paid physicians who prescribed Thalomid® or Revlimid® to conduct speaker programs,
· Provided monetary support to physicians who prescribed Thalomid® or Revlimid® to conduct clinical trials and to write or be listed as authors on medical literature,
· Paid physicians who prescribed Thalomid® or Revlimid® to work as consultants or serve on advisory boards, and
· Induced purchases of Thalomid® or Revlimid® by defraying patients’ co-payment obligations for those drugs.

In total, Celgene will pay the states and the federal government $280 million dollars. North Carolina’s nearly $2 million share will go to restitution and other recovery.